Wilkinson shuts final salary pension scheme after profits hit

The discount retail chain Wilkinson says it is to close its final salary
pension scheme to future accrual after profits missed expectations in the
last year as it battled tough economic conditions in the UK.

Wilkinson, which has almost 400 stores in the UK, said sales fell 2.3pc in the year to £1.53bn, although pre-tax profits rose by 21pc to £27.5m.

Wilkinson is battling fierce competition from rival discount chains such as Poundland and B&M, as well as fragile consumer confidence.

Ian Ellis, the finance director, of Wilkinson, said the company had been forced into “difficult decisions”, such as closing its final salary pension scheme to future accrual from the end of July and slowing down a store modernisation scheme.

Mr Ellis added: “The profit growth was only achieved because of our realistic view of the trading prospects for 2012 and the resultant actions to reduce costs and improve efficiency.”